Where Small Businesses Are Spending Their Ad Dollars
Small businesses are moving more of their marketing money to social media, and less to email. A survey of 527 small business owners found social ad budgets are up 22% from last year, while email budgets fell 8%. But the channel getting cut may be the one that pays back best.
Here’s where the money is going, where holiday shoppers are actually looking, and how to make your budget work harder this season.
Where the budget goes
The average small business spends about $4,200 a month on marketing, split like this:
| Channel | Share of budget |
| Digital ads (Google, Facebook) | 38% |
| Content and SEO | 24% |
| Social media management | 18% |
| Email marketing | 12% |
| Other (design, tools) | 8% |
Don’t cut email
Email has the highest reported return of any channel, about $4.20 for every $1 spent, compared with $2.80 for social ads. Your email list is made up of people who already know you, so it’s one of the cheapest ways to bring them back during the holidays.
Social is where shoppers browse
Social media is growing as a sales driver. Adobe expects revenue from social media referrals to grow 17% this holiday season, faster than paid search (4%).
Still, most shoppers use social to get ideas, not to buy. 29% research gifts on social media, but only 9% buy there. Make sure your posts point people to your store or website.
Don’t forget search and AI
Shoppers still start in familiar places. 52% research gifts by visiting stores and 42% use search engines. AI is catching up fast: traffic from AI tools to retail sites is expected to grow 130% this season.
An up-to-date Google Business Profile, accurate holiday hours, and clear product and service pages help you show up in both.
Smart moves for your holiday budget
- Email your list first. Send early-access deals to your best customers before Black Friday.
- Use social to show, then send. Post short videos of products and link to where they can buy.
- Lead with your best offer. Buy-one-get-one is the top offer shoppers want (36%), and “save $20” beats “20% off.”
- Update your listings. Check your Google profile, hours, and website before the rush.
- Track what works. Put a unique code or link in each channel so you know where sales come from.
Fund your marketing before the rush
Ads and promotions cost money before the sales come in. An ARF Financial Bankroll revolving line of credit gives you funds to draw on for holiday marketing as you need them. Planning a bigger push into the new year? Look at Elevate Bankroll.
Your privacy is important to us. ARF Financial will never sell or rent your information to any third party. Click here for more information about our privacy policy.